Business Information Systems - Term Paper Example

Business Report on Business Information Systems By: Over time, the field of information technology has proven significant in the running of the global economy. Its integration in the development of different fields has resulted in a transformation of the mode of operations by allowing for innovation of old systems used in the day-to-day activities. The use of such technologies has established a new set of rules different from the traditional ones, allowing for creativity while retaining the critical values desired. Consequently, the world has witnessed some major improvements in the efficiency and productive abilities of the systems. The fact remains, however, establishment and development of the information technology is attributed to the encouraging outcomes. As a result, the phenomenon has resulted in a major transformation in the business field for example (Sharma & Bhagwat, 2006, pp.8-21). Quite a number of business enterprises have now opted to utilize the use of information in technology in the running of their operations. Ranging from small, medium to even large organizations, the integration of the information technology in the business operations has increased the growth capability. It has increased by offering reliable means for assessment and analysis through use of modern software; thus, business managers can use transparent as well as accountable means that are in accordance with the International Financial Reporting Standards (IFRS). Thesis Despite the widespread attention that is attracted by the use of information technology on the entire business field, the impact that is witnessed in a small and medium enterprise is of most concern. The use of business systems that are based on information technology has a more accentuated outcome compared to the big enterprises. As such, this paper will offer guidance to the crucial factors that are to be considered in the setting up of business oriented information technology. Through the study of this paper, the audience will have acquired in-depth understanding of the critical business information systems for the effective development of in small and medium size businesses. Such knowledge will enable the reader comprehend the consequences of effectively administering particular business information systems to the mentioned enterprises. Introduction The wellbeing of small and medium sized enterprises has a vast influence on the prosperity of any country. Mainly, this scenario is because a huge proportion of the population lies within that mentioned work bracket. In essence, these kinds of business units form the backbone of a majority of the notable economies. It is expected that most of the business enterprises within the state are either small or medium sized and thus require careful attention. As such, one should consider the use of information technology in the nurturing of the enterprises as well as to position them strategically them in order to enjoy optimum growth rates. Experience has showed that the conception stage is very important for the success of a given business venture, and since most of the small and medium sized enterprises lie within this category, effective operations are crucial. Furthermore, the access to information by the businesses in terms of new business opportunities, business rules and regulations, taxes, as well as new technologies, is scarce (Sharma & Bhagwat, 2006, pp.8-21). It is imperative that the means of operation are transparent, accountable, and reliable and even qualify for further analysis in an attempt to comprehend the effects of the results according to the assessment of the enterprises. Body In order to understand the required business information systems by any field, it is important to acknowledge the problems that are associated with the same entities. In fact, a proper analysis of the problems that are encountered by a particular entity will be used in the development of relevant business oriented information systems. Therefore, in an attempt to establish appropriate business information systems for small and medium sized company ought one to assess the specific challenges that the entities encounter in their daily operations. One of the common challenges that face small and medium sized enterprises is operational and structural oriented difficulties (Sharma & Bhagwat, 2006, pp.8-21). Such issues relate to the inaccessibility to information due to expensive costs of acquiring the technologies. Setting up of appropriate information technologies that will offer the company information regarding the market and cheap sources of financing has often proved too much for the small and medium companies. Often this privileged has been enjoyed by large enterprises with a large foundation of resources. Thus, the scenario has constantly left the disadvantaged enterprises unable to compete favorably in the business industry. Once and understanding of the issues associated with a given small and medium sized enterprise has been established, the next thing is the assessment of available business information systems that are directed at solving certain problems with the entities. The same systems tend to offer opportunities that if well exploited lead to the success of the enterprise. Some of the crucial systems to such enterprises are enterprise systems. An enterprise is capable of making favorable decisions that set it on the path for gaining competitive advantage if they introduce elements of supply chain management, business process reengineering, customer relationship management, as well as enterprise resource planning (Winter, 2009, pp.464-478). Supply chain management majorly deals with the management of information among the entire lengths associated with the supply of the product by the enterprise. The intention of that system is to ensure increased companys profitability, as well as improved effectiveness in the execution of the activities involved. Among the common elements of supply chain management are supply chain partners, supply chain strategy, supply chain operation as well as supply chain logistics. Customer relationship management is aimed at fostering customer loyalty through retention in order to maintain and promote the profitability of the organization. This component of the business information systems studies the customer trends and behaviors in order to react accordingly and take advantage of the possession of such information. As such, a company must review a selection of possible strategies to execute its mandate appropriately. A business process entails the particular set of activities that are aimed at accomplishing a given task. In that respect, the reengineering of business process will analyze and redesign the flow of operations within an enterprise (Winter, 2009, pp.464-478). Such tasks are aimed at ensuring the processes are organized in the best possible way in terms of minimizing costs while increasing profits. In essence, they ensure an improved productivity output through such methods as cross-functional and cross-departmental approaches with the consideration of specialization and the integration of modern technology. In addition, business process reengineering has often yielded new business opportunities that were previously unimagined. Lack of consistency is a major challenge that faces small and medium enterprises. Implementing new systems or methods of operation has to be done about other departments. One must consider the possible impact out of installing a particular technology to the business in general. In fact, it is the intention of this element of business information systems that an appropriate integration results in resource planning for the enterprise. An effective platform for effecting control and authority in the entire business orientation should be the outcome of such a system. Use of the enterprise resource planning software should help focus on the important functions of sales, accounting, marketing, human resources, operations as well as logistics (Winter, 2009, pp.464-478). A successful enterprise resource planning system will have a good business analysis, firm implementation plans and overall fit. Another set of systems that are important for small and medium enterprises that possess a business orientation are decision-making systems. This area is mostly cumbersome for the entities because their size offers unique problems that require specialized consideration rather than the application of universally acknowledged solutions. It is, therefore, clear that such systems aid in yielding strategically focused solutions that also possess a trait of opportunity orientation. While the value of information to any business is large, the use of such information in decision-making has consequences that are more significant to the well-being of the same enterprise. In addition, the more an enterprise grows, the more an entity is involved in complex decision-making circumstances that are geared at yielding achieving results within constrained periods. Decision-making information systems usually create models that act as representations of the reality about the information relating to the business. Through such simulations, they offer deep insight into the possible business issues and available opportunities out of pursuing certain approaches. The most common decision making information systems that could be employed by simple and medium sized enterprises are decision support systems, executive information systems and transaction processing systems (Winter, 2009, pp.464-478). Different models are utilized, but the main purposes of the approaches are to offer assistance in terms of problem solving, problem specification and decision-making. The execution of the same models takes place at different structural levels within the hierarchy of the business enterprise. While the technicians at the lowermost hierarchy execute the transaction processing systems, the managers execute decisions support systems and the executives of the company later implementing the executive information systems at the topmost hierarchy. It implies that data collected at the lowermost hierarchy of the business enterprise undergoes a series of stages before an appropriate decision strategy can be formulated in respect to the entity. Transaction processing systems entails data within a single business process with its core purpose being offering of support to the performance of daily operational tasks. Such information mostly relates to the performance of repetitive tasks such as daily sales reports. Once such data has been analyzed, it offers the managers the ability to make decisions about other external information such as market trends and environmental factors. Usually these attribute of decision-making is supported by decision support systems that may use different quantitative models in execution of their mandate. The approaches include sensitivity analysis, what I analysis, as well as the famous goal seeking analysis (Sharma & Bhagwat, 2006, pp.8-21). Executive information systems reflect a more specialized structure of decision support systems that are implemented by senior executives within the business enterprise. They usually refer to external sources and internal sources to make decisions for the enterprise in terms of strategies for the entity. Conclusion Although identification of important business information systems for the small and medium sized businesses is crucial for the success of the venture. It is also important to consider the integration of the applicable business systems. It is imperative that values such as consistency, reliability, accountability and transparency are manifested through any proposed business information system. The in depth insight shared on the subject by this paper, therefore, offers the public an ideal manifestation of the implication of effectively using business information systems in the small and medium enterprises. References Curtis, G. (1989). Business information systems: analysis, design, and practice. Wokingham, England: Addison-Wesley. Gunasekaran, A., & Sandhu, M. (2010). Handbook on business information systems. Singapore: World Scientific. Nowduri, S., & Dba, S. A. (2012). Management Information Systems and Its Support to Sustainable Small and Medium Enterprises. International Journal of Business and Management, 7(19), 24-58. Scheer, A. (2009). Business and Information Systems Engineering Links Science with Entrepreneurship. Business & Information Systems Engineering, 1(1), 75-80. Sharma, M. K., & Bhagwat, R. (2006). Performance measurements in the implementation of information systems in small and medium-sized enterprises: a framework and empirical analysis. Measuring Business Excellence, 10(4), 8-21. Willoughby, T. C., & Senn, J. A. (1975). Business systems. Cleveland: Association for Systems Management. Winter, R. (2009). Patterns in Business and Information Systems Engineering. Business & Information Systems Engineering, 1(6), 468-474. Read More